Bond Market News

US primary market new deals rose sharply last week to $38.8bn vs. $23.3bn a week prior. Among this, IG deals stood at $30.5bn, led by BofA’s $8.5bn four-trancher and Intuit Inc’s $4bn four-trancher. HY deals last week stood at $8.3bn led by Bausch & Lomb’s $1.4bn and CITGO Petroleum’s $1.1bn deals. In North America, there were a total of 31 upgrades and 45 downgrades across the three major rating agencies last week. US IG bond funds saw inflows of $223mn, reversing the outflows of $2.1bn seen during the prior week. For the same period, HY funds saw inflows of only $80.5mn, adding to the $252mn in inflows seen in the week prior.

EU Corporate G3 issuances more than halved to $21.5bn vs. $47.5bn a week prior. Issuance volumes were led by KBC Group’s $2bn two-trancher, ABN AMRO’s $1.25bn deal and BBVA’s $1bn issuance. The region saw 34 upgrades and 16 downgrades across the three major rating agencies. The GCC dollar primary bond market saw $1.75bn in new deals after $2.2bn in deals a week prior. Issuances were led by Energy Development Oman (EDO) $1bn and Sharjah’s $750mn deal. Across the Middle East/Africa region, there was 1 upgrade and no downgrade across the major rating agencies. LatAm saw $565mn in new deals after $3.75bn in deals a week ago. Deal volumes were led by Hunt Oil’s $435mn deal and Minerva’s $100mn issuance. The South American region saw 1 upgrade and no downgrades across the rating agencies.

G3 issuance volumes from APAC ex-Japan halved to $6.4bn vs. $12.1bn a week prior to it led by KEXIM’s $2bn three-trancher and Bangkok Bank’s $1.25bn two-trancher. In the APAC region, there were 5 upgrades and 24 downgrades each across the three rating agencies last week.